Aaron’s verdict on who has had a good week (heading for a first) and who has had a bad week (heading for a fail).
Heading for a first: campaign for financial education
With all the furore surrounding tuition fees, debt, loans and interest rates, very little thought has been given to the support, and crucially the education given to school pupils about finance and money. So with higher education funding rarely out of the headlines, Martin Lewis of the Money Saving Expert website has launched a campaign to get compulsory financial education into the school curriculum.
While higher education funding may have been the catalyst for the campaign, it’s evident that financial education wouldn’t be limited to information about that, in fact the plan would be to cover the basics of personal finance and consumer rights. Launching a petition on the government’s new e-petition website, Martin Lewis describes the current state of affairs as “a national disgrace that in the 20 years since introducing student loans, we’ve educated our youth into debt when they go to university, but never about debt. We’re a financially illiterate nation.” Strong words, but then again a comprehensive understanding of basic finance is an important issue. A wrong decision, or unchallenged misinformation can cost thousands.
Since launching the campaign, the e-petition has quickly passed more than 50,000 signatures. And with parliament giving consideration to a full debate on any petition that passes 100,000 sign ups, it’s already over half-way there.
In an economy that already requires an increasingly sophisticated understanding as to how to make the right financial decisions, this seems like a no-brainer to me. To add your name to the petition, you can sign up here.
Heading for a fail: 2012 university applicants
The government likes to claim they don’t understand the system and perhaps the financial education they receive isn’t up to scratch, but it doesn’t take a degree to realise that lots of potential university applicants for 2012 are going to be deterred from applying due to the hike in fees. The big question for universities, but also the government, is how many? Up until now, it’s been almost impossible to say with any authority how many fewer applicants we could see for the 2012 intake. Lessons from history show us that after the previous tuition fee rise, from £1,000 a year to £3,000, we saw a 5% drop for the 2006 intake. But that was quite a different reform that met with quite a different reaction and crucially was done at a time when there was record investment in the outreach infrastructure such as AimHigher. With that infrastructure gone and a hostile reaction on the streets and in the press, initial predictions have been for a drop of anywhere between 5% to 20% through university doors come 2012.
Anything approaching a double digit fall would be catastrophic for the coalition, and for the Liberal Democrats in particular, who are desperately hoping that their tuition fee car crash won’t cause them any more political damage. If the decrease is negligible, they will at least claim it hasn’t had the damaging impact many feared it would. However, it will do little to allay the concerns of thousands of students and their parents who still feel betrayed after their very public pledge signing, and then discarding. Anything approaching a 10% fall or more, will simply give more ammunition to the long-standing critics of the tuition fee trebling.
So this week, findings from the first major study into the applicant intentions from the National Foundation for Education Research (NFER), which surveyed over 1,000 secondary school pupils aged between 14 an 17, will make uncomfortable reading for the coalition. NFER’s headline was that 15% of pupils in school years 10 to 12 in England who were originally planning to go to university have now decided not to, 19% of school pupils have decided to only apply to universities charging less than the £9000 a year, and 26% said they will only apply to universities where they can live at home. But perhaps most shocking of all, was that 79% of respondents said that the tuition fee increase was forcing them to change their plans about future study in some form or another. It’s going to take more than a Simon Hughes sized sticking plaster to remedy this.
So the clock is ticking to see whether the findings from this research project will be translated into the real decline many predicted when the government first announced their plans, but if this is anything to go by, it does not look encouraging.